SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 1997
FREEPORT-McMoRan COPPER & GOLD INC.
Delaware 1-9916 74-2480931
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code:(504) 582-4000
Item 5. Other Events.
NEW ORLEANS, LA., May 12, 1997 - Freeport-McMoRan Copper & Gold
Inc. (FCX) announced that, at its annual securities analyst
meeting, company representatives will discuss FCX's operating
activities including the status of its exploration and expansion
programs in Irian Jaya, Indonesia. Exploration activities
continue within FCX's original Block A area consisting of 24,700
acres and the adjacent Block B area consisting of 3.25 million
acres both covered by the contract of work (COW) of FCX's
subsidiary, P.T. Freeport Indonesia Company (PT-FI). FCX is also
conducting exploration activities within the 1.8 million acre
area covered by the COW of FCX's subsidiary, P.T. Irja Eastern
Minerals Corporation (Eastern Mining).
FCX also announced today that the Government of Indonesia's
Department of Mines and Energy has indicated its approval to
allow FCX to expand its mill operations up to 300,000 metric tons
of ore per day (MTPD) pending successful completion of the
environmental assessment process. The ability to increase
production, beyond the currently underway fourth concentrator
mill expansion to a minimum of 190,000-200,000 MTPD, provides FCX
significant flexibility and opportunities for enhancement through
future mine planning and production scheduling. This will allow
FCX to maximize value from its ore reserves both within the
Grasberg open pit as well as incorporating its new high grade
underground ores, including Kucing Liar, Big Gossan and Grasberg
reserves.
Exploratory drilling within Block A continues to yield
positive results and will favorably impact future mine planning
and expansion decisions. Specifically, exploration activities at
Kucing Liar continue to provide very encouraging results and is
confirming the 200-250 million metric ton geologic resource of
2.0 percent copper equivalent previously announced on the
southeast quadrant of the Grasberg intrusive. At year-end 1996,
82.3 million tons of ore averaging 2.2 percent copper equivalent
at Kucing Liar, representing 1.9 billion pounds of copper and 2.7
million ounces of gold, were added to recoverable reserves.
Additional drilling is being conducted from within the Kucing
Liar/Lembah Tembaga drift being driven from the Amole adit.
Also, surface drilling on the northern flank of the Grasberg
intrusive has commenced to test for Kucing Liar and "skarn-type"
mineralization at the 2,500-2,900 meter elevation. FCX believes
that both Kucing Liar and heavy sulfide "skarn-type"
mineralization could surround much of the Grasberg intrusive at
these depths. Underground drill results from the Amole adit on
the southeast flank of the Grasberg intrusive are reported below,
representing a partial list of the drill hole information
encountered at Kucing Liar since our update of September 18,
1996.
Hole No. Interval %Cu g/t Au %CuEq.
-------- -------- ---- ------ -----
KL16-8 210.0m 0.98 1.43 1.91
KL18-8 142.5m 1.34 1.88 2.56
KL20-7 156.0m 1.04 0.84 1.59
KL20-9 40.5m 1.21 1.39 2.11
KL22-5 408.4m 1.21 1.15 1.96
KL23-8 326.0m 1.18 1.12 1.91
KL24-3 299.3m 1.27 1.07 1.97
110.1m (deep) 1.27 0.72 1.73
KL24-4 457.5m 2.05 1.80 3.22
Additionally, drill hole GRS 34-1 was drilled in front of the
advancing Amole adit at a -20 degree angle to test the downward
extension of the Grasberg mineralization below the presently
outlined 2,820 meter elevation block cave reserve.
The following mineralized intervals were encountered, which
indicate the potential for additional Grasberg reserves at depth.
Hole No. Elevation Interval %Cu gAu %CuEq.
-------- --------- -------- ---- ---- ----
GRS34-1 2880 96m 1.26 1.02 1.92
2820 51m 1.16 0.86 1.72
2800 132m 1.20 1.01 1.85
2750 41m 1.21 1.29 2.05
2700 79m 0.94 0.29 1.13
Further drilling will be required from the advancing Amole adit
to fully evaluate this deep Grasberg potential.
Also, the driving of the Amole adit into the Grasberg
orebody has provided a unique opportunity to take "rib" samples
off the walls of this adit, which resulted in the following
mineralization.
Amole
-------------------------------
Main Drift
-------------------------------
Interval %Cu gAu %CuEq.
-------- ---- ---- -----
6m 1.63 1.37 2.55
3m 2.07 1.01 2.75
6m 1.71 1.24 2.54
6m 1.53 0.90 2.13
--- ---- ---- ----
21m 1.69 1.15 2.44
Exploration drilling continues at various other targets
within Block A including western extensions to the DOZ orebody,
West Grasberg, Idenberg, DOM SE and, as mentioned above, Kucing
Liar North.
Field work within Block B continued with 3-5 drills
operating in the Hitalipa District. Geologic crews are
conducting follow-up mapping, sampling and geophysical surveys in
other target areas. The Wabu gold zone, containing a 3.0-4.0
million ounce geologic resource, continues to be drilled in order
to bring this resource to reserve status. Efforts to further
expand the near surface resource by 0.5-1.0 million ounces are
currently being focused in the East Ridge and FI zone areas.
Upgrading of the resource by infill drilling also continues in
the FI & Central zone areas of the Wabu prospect. Following is a
partial list of some of the recent drill results.
FI Zone (Infill Drilling &
Exploration)
-----------------------------
Hole No. Interval gAu/t
------- -------- -----
BO-117 24m 13.47
BO-109 21m 11.53
BO-108 21m 5.18
BO-110 21m 4.42
BO-129 21m 1.92
BO-165 9m 4.28
Central Zone (Infill Drilling)
-----------------------------
BO 144-3 45m 1.88
BO 158-3 36m 1.80
BO 176-4 69m 2.30
BO 176-3 27m 5.27
East Ridge Zone (Exploration
Drilling)
-----------------------------
160-1 6m 1.15
205-2 3m 6.88
205-3 3m 8.61
219-1 9m 2.11
219-4 18m 6.75
Drilling is also underway at other targets including the
Pagane porphyry and Minjauh prospects. The Pagane porphyry
prospect represents a geophysical resistivity anomaly coincident
with a 500 meter by 500 meter altered intrusive with surface
samples exhibiting anomalous copper and gold mineralization
having values ranging from 1.0-2.6 percent copper and 0.75-2.0
grams per ton gold. Pagane and another resistivity anomaly also
on the north side of Wabu Ridge are postulated as being the
potential source of the mineralizing solutions which are
responsible for the gold resource discovered to date along Wabu
Ridge. Exploration drilling activities have been initiated on
the Pagane and Minjauh prospects.
Drilling continues in Eastern Mining's Etna Bay District
involving porphyry copper/gold and gold targets. Regional
follow-up mapping and sampling continues on other targets within
Block I. Coincident magnetic, geochemistry and geology anomalies
are being reevaluated in light of newly acquired geophysical
resistivity data.
Exploratory activities in Block II are being concentrated on
completing the regional geology and drilling at the Haiura
prospect. Early drill results for gold from the Haiura drill
site HU-7 are tabulated below.
Drill No. Interval gAu/t
--------- -------- -----
HU 7-1 228m 2.08
(36m 8.13
3m 41.9)
HU 7-2 27m 5.19
(3m 36.0)
HU 7-3 12m 2.23
Porphyry style mineralization also exists in the Haiura area
where grades from surface samples exhibiting anomalous copper and
gold mineralization range between 1.0-1.25 percent copper and
0.75-2.5 grams per ton gold.
Surface work at Katehawa East, also in Block II, has
outlined a 200 meter by 500 meter mineralized intrusive
associated with a magnetic high with surface samples exhibiting
anomalous copper and gold mineralization ranging between 1.0-4.5
percent copper and 0.75-4.0 grams per ton gold. A helicopter
assisted sampling program was completed in Eastern Mining's Block
III area with results presently being interpreted.
FCX is engaged in mineral exploration and development,
mining and milling of copper, gold and silver in Irian Jaya,
Indonesia and the smelting and refining of copper concentrates in
Spain. FCX is also involved in a joint venture to construct and
operate a smelter/refinery in Indonesia.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
FREEPORT-McMoRan COPPER & GOLD INC.
By: /s/ Michael A. Weaver
------------------------------
Michael A. Weaver
Controller - Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: May 13, 1997
